Tuesday, September 23, 2008

Qualifying Dependents; Older Than 19

Today,I was asked the question of whether or not a 32 year old son living at home with his parents woud be considered a depedent if they did not work or contribute to any of the household expenses? The answer is yes if the following applies:

A dependent is a person other than the taxpayer or spouse who entitles the taxpayer
to claim a dependency exemption.
Each dependency exemption decreases income subject to tax by the exemption
amount. The exemption amount changes each year.

• For 2007, the exemption amount was $3,400.
A taxpayer cannot claim a dependency exemption for a person who can be claimed
as a dependent on another tax return.
The term "dependent" means a "qualifying child" or a "qualifying relative."

A. To claim a dependency exemption for a qualifying child, all of the qualifying child
dependency tests must be met:

• Dependent Taxpayer Test
• Joint Return Test
• Citizenship Test
• Relationship Test
• Age Test
• Residency Test
• Support Test

*They would need to make less than $3400 a year, and live at home for at least a year for his parents to claim him as a dependent.

The following are considered a "Qualifying Dependent"

Taxpayers will meet this test for the following relatives if the relatives meet
the requirements of the relationship test:
• child
• parent
• brother/sister
• stepparent
• stepchild
• stepbrother/stepsister
• half brother/half sister
• grandparent
• grandchild
• son-in-law/daughter-in-law
• mother-in-law/father-in-law
• brother-in-law/sister-in-law
If related by blood, relatives also include
• uncle/aunt and
• niece/nephew.

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